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By Erwin Seba
HOUSTON (Reuters) – More than a quarter of U. S. oil production off the Gulf of Mexico closed and export ports closed Tuesday when Hurricane Sally staned off the U. S. Gulf Coast, bombing the region with heavy rain.
Sally weakened Tuesday to Category 1 with sustained 85-mile hourly (140 km/h) winds, moving at the speed of a snail that threatened “historic” flooding from Mississippi to Florida, the US National Hurricane Center said. Update the https://tinyurl. com/y66gwc4s.
The typhoon passed through major offshore production spaces in the United States and meandered down a path to Alabama and the Florida Panhandle, saving New Orleans and some of the Gulf Coast’s largest refineries from their winds and rain.
Royal Dutch Shell closed its Appomattox oil rig about 80 miles off the Louisiana coast, joining BP, Chevron Corp and Equinor to close services less than a month after Hurricane Laura took about 1. 5 million barrels, consistent with offshore oil day.
About 500,000 b/d of offshore crude oil production and 28 percent, or 759 million cubic feet per day (mmcfd), of herbal fuel production were closed Tuesday in the US Gulf of Mexico. U. S. A. , U. S. Department of the Interior.
U. S. crude oil futures But it’s not the first time They rose by almost 3% and gas futures rose by 2. 3% on Tuesday due to hurricane-related oil production and refining closures despite the call for losses due to the COVID-19 pandemic.
The country’s only offshore terminal, Louisiana Offshore Oil Port (LOOP), stopped loading tankers on Sunday, while the ports of Biloxi, Mississippi, in Pensacola, Florida, were closed and ports along the Mississippi River began reopening on Tuesday night with restrictions. Closures will reduce approximately 307,000 b/d of crude oil and 411,000 b/d of subtle products, according to Kpler data.
Starting at 10 p. m. CDT (03:00 GMT) Tuesday, Sally about 65 miles (105 km) south of Mobile, Alabama, and crawling northwest at 2 mph (3 km/h). Progressive progress threatened to flood the area.
Refineries in the region have ceased operations and Phillips 66 has closed its Alliance oil refinery, which processes 255,600 b/d along the Mississippi River off the coast of Louisiana.
Shell reduced production to minimal rates Monday at its 227,400 b/d refinery in Norco, Louisiana, but planned to install a chemical and refining plant in Mobile, Alabama, which operates with a small team.
Murphy Oil Corp said it is beginning to repair production on its east oil rigs in the Gulf of Mexico, and oil giant Equinor said it planned to return personnel to its Titan platform on Thursday.
(Report through Erwin Seba, Gary McWilliams in Houston and Devika Krishna Kumar in New York; Editing through Marguerita Choy, Jason Neely and Tom Brown)